By Gary Thomas
Frost & Sullivan’s new analysis titled ‘Impact of Australia Carbon Tax on the Energy Markets-a Strategic Perspective’ discusses the carbon tax, carbon tax in the global scenario, available government programs and grants, industries' readiness for the tax, and available opportunities as a result of the carbon tax.
Australia has implemented carbon tax effective from July 2012 as a measure of lowering carbon emission. Now, firms with emission level of more than 25,000 tons per year must pay the carbon tax. Although the carbon tax is an issue for industrial companies, it will increase production of renewable energy power and demand for energy-efficiency solutions in Australia, regardless of the unchanged renewable target in 2020.
Sarah Wang, Senior Consultant at Frost & Sullivan, informed that the Australian government has declared a series of programs and grants worth more than $AUD 20 billion for reducing the impact and making a smooth transformation to a low-carbon economy.
Liable companies have adequate awareness about the available grants and the impact of the carbon tax on their businesses. However, non-liable companies seem to be unaware of the carbon tax and its impact on their businesses.
Industrial companies that use more amounts of energy are expected to face a 5% to 15% increase in cost, which will prompt them to look for power sources and solutions that lower energy usage or reduce carbon emission, said Wang.
Nevertheless, majority of the companies have shown less interest in investing the initial capital to purchase the solutions and systems to reduce energy consumption. Thus, energy-efficiency solution suppliers must carry out active promotional activities to help industrial energy consumers understand the advantages and impact of the carbon tax.